The Australian government has promised $100 million to help displaced automotive manufacturing workers in Victoria and South Australia from 2017.
It follows GM Holden's December 11 announcement that it will close its Australian manufacturing facilities the same year due to a 'perfect storm' of negative influences, the result of which will leave almost 3000 employees jobless.
The $100 million fund will be used to "invest in potential employment-generating projects in South Australia and in Victoria," said Tony Abbott, but the nature of those projects was not specified.
The Abbott government will contribute $60 million and the Victorian state government has signalled it will pay $12 million.
However, the South Australia is still negotiating and is unlikely to chip in the last $28 million – despite the federal government’s $100m announcement today.
The government is hoping Holden will also contribute to the employment-generating project fund, to the tune of "$20 million perhaps".
Holden's factory closures will result in the loss of 2900 jobs, including 1600 from South Australia and 1300 from Victoria. The impact of Holden's closure in 2017, a year after Ford shuts its plants in 2016, is expected to affect at least 40,000 Australian workers, including those at around 160 tier-one parts suppliers that will see their contracts fade away.
In addition to the cash injection, PM Abbott said his government would look at other ways to build industry in Australia, and stated he would chair a national taskforce to investigate new manufacturing opportunities.
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